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PMB declines to release Rs 1.2 bn FD for paddy purchasing

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Treasury forced to bear responsibility for Rs 2 bn in loans

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya has said that the State Banks weren’t in a position to release funds to the Paddy Marketing Board (PMB) as the enterprise owed them a staggering sum, running to over Rs 20 bn.

Due to the failure on the part of the state enterprise to settle previous loans, the Treasury has been compelled to accept the responsibility for repaying them, the State Minister said.

The Kegalle District lawmaker said so on the live political programme, Salakuna, telecast on Hiru on Monday night. The State Minister was responding to interviewer Chamuditha Samarawickrema’s query regarding the inordinate delay on the part of the government to implement the paddy purchasing scheme.

Referring to Agriculture Minister Mahinda Amaraweera’s abortive efforts to obtain the required funding, lawmaker Siyambalapitiya said that the Treasury was helpless.

State Minister Siyambalapitiya said the PMB couldn’t be faulted for the crisis as successive governments had directed the state enterprise to purchase paddy at a higher price, then ordered it to sell at a much lower price, thereby causing staggering losses.

The State Minister also acknowledged management level shortcomings and political interventions caused the ruination of the PMB.

The PMB owed the Bank of Ceylon and the People’s Bank Rs 1,600 mn and Rs 690 mn, respectively.

The State Minister acknowledged that the issue couldn’t be resolved in spite of interventions made by President Ranil Wickremesinghe and Premier Dinesh Gunawardena. Referring to a subsequent discussion he had with the Secretary to the Treasury Mahinda Siriwardana, lawmaker Siyambalapitiya said that the BOC has asked for Rs 1.2 bn fixed deposit as security though the PMB declined to do so. According to the State Minister the PMB asserted that it couldn’t forgo the fixed deposit as the

interest received was utilized for day to day running of its operations.

The State Minister said that the banks could release the required funding on the basis of a guarantee given by the Treasury. The lawmaker explained the inability on the part of the Treasury to give such a guarantee as further deterioration of public finance could have a devastating impact on the banking sector. Such an eventuality couldn’t be allowed, the SLFPer said.

The Minister acknowledged that the failure on the part of the government to launch a paddy purchasing scheme would dishearten the farmer community.

Chamuditha Samarawickrema pointed out that the private sector had managed their ‘operations’ in a much better way.

The State Minister said that the situation was so bad that of the recent Rs 93 mn public sector salary bill, the government could meet Rs 82 mn. The government had no option but to ask those state enterprises to pay salaries from their funds, pending repayment, the MP said, reiterating the Treasury couldn’t help the PMD at the moment.

Responding to further questions, the State Minister said that the government would definitely give priority to the PMD issue once they finalized public sector salary payments. The Minister urged the media not to pursue an agenda detrimental to the government’s recovery efforts. Asked to explain, the State Minister said that there had been accusations the government didn’t purchase paddy to clear the field for the private sector. The Hiru team pointed out that the banks had released substantial amounts to the private sector to purchase paddy. The Minister explained the banks tried their best to help but circumstances were such the government couldn’t help at the moment.



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Six member committee appointed to inquire into Sri Lanka Cricket Team’s conduct in Australia

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Minister of Sports and Youth Affairs Roshan Ranasinghe has appointed a six member committee headed by Retired Supreme Court Judge Kusala Sarojini Weerawardena to inquire into the incidents reported against some members of the Sri Lanka Cricket team that participated at the ICC T20 World Cup in Australia.

 

 

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SJB MP: Most parents have to choose between food and children’s education

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By Saman Indrajith

Most Sri Lankan parents are compelled to choose between food for their families and their children’s eduction, SJB Matale District MP Rohini Kumari Wijerathne told Parliament yesterday.

Only a few parents were able to feed and educate their children the MP said, participating in the debate on Budget 2023 under the expenditure heads of Ministries of Education and Women and Child Affairs.

“An 80-page exercise book costs Rs. 200. A CR book costs Rs 560. A pencil or pen costs Rs 40. A box of colour pencils costs Rs 570 while a bottle of glue costs Rs 150. If the father is a daily wage earner he has to spend one fourth of his salary on a box of colour pencils for his child. A satchel now costs around Rs 4,000. A pair of school shoes is above Rs 3,500. The Minister of Education knows well how many days a child could use an 80-page exercise book for taking notes. Roughly, stationery cost is around Rs 25,000 to 30,000 per child, MP Wijerathne said, adding that only Rs. 232 billion had been allotted for the Ministry of Education by Budget 2023.

“After paying salaries of teachers and covering officials’ expenses, etc., there will be very little left for other important matters,” the MP said, noting that Sri Lanka would soon be known as the country that made the lowest allocation of funds for education in the South Asian region.

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All crises boil down to flaws in education system, says Dullas

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By Saman Indrajith

All the crises Sri Lanka was beset with were due to the country’s outdated education system, MP Dullas Alahapperuma told Parliament yesterday.

“The political and economic crisis we are facing is the direct result of our education,” he said.

The Sri Lankan education system had not changed with global developments. Our system is not even geared for employment. Our examination system is antiquated and our classrooms are in the 19th Century.

However, the students belong to the 21st century. How can you cater to 21st Century children under an outdated system?” he queried.

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